tv Bloomberg West Bloomberg September 14, 2015 8:30pm-9:01pm EDT
emily: investors grow even more cautious about china's economy, but could its growing internet industry give beijing a much-needed boost? ♪ i'm emily chang, and this is "bloomberg west." alibaba fights back against the critical article. plus want to build a self , driving car? tom-tom says no problem. and salesforce prepares to take san francisco with dreamforce. all of that ahead on "bloomberg west." china stocks slumping the most in three weeks.
new economic data added to concerns about the slowdown. industrial output rose in august but fell short of estimates. investments increased at the slowest pace since the year 2000. all of this ahead of the chinese president xi jinping's first state visit to the united states, and the summit in seattle organized by the chinese government. joining me to talk about all of this is carmen chang and matthew prince. he just announced a joint venture with bart. i want to start with you. this is really interesting. you have announced this big partnership with baidu and you guys don't even operate in china. on the other hand, you have the ceo saying everyone is underestimating the capacity of the internet boom in china and don't understand the online to off-line world. guest: it is really is an amazing.
there are 700 million internet users, or one out of every four internet users is actually in china. we recognized it is a market our customers cared about and chinese consumers wanted to be able to access other companies around the world. one cloud player is providing performance and security services, from -- to companies ranging from small businesses to fortune 50 organizations, china was top of mind, and this partnership allows us to ensure internet will be faster and safer inside china. carmen, you not only help u.s. companies expand in china, but you liaise with a lot of chinese companies. how worried are you about these broader concerns about a chinese economic slowdown? carmen: i feel when we look at china, there's tremendous excitement and i feel in many ways the prospects for china where people had very high expectations and i think now, people are very worried. i think there will be some
slowdowns that i don't think it is going to be any kind of major disruption. i do think there are -- is some market correction going on which i think is a positive step. i'm really not that worried about the situation. emily: tell me how the partnership works. you call it a virtual joint venture because cloudflare does not operate in china. what is possible, is foreign websites will load more quickly in china, which means it could be a boon to foreign companies. matthew: that's exactly right. to give you some sense, we saved over 240 years worth of time that chinese internet users would have spent waiting for websites to load. in the past today. emily: having lived in china and used the internet, that is a lot of time saved.
matthew: it is huge. time, thet back united states would not even exist as a country 240 years ago. what is remarkable is we worked with high due to allow our customers to be announced inside china but we have done it in such a way that the personal, private data, the secrets of those companies and passwords are never shared inside mainland china. and so cloudflare has no , operations in china, we rely on baidu to do that. but we have this unified plot from that can ensure performance security and availability now matter where your customers are in the world. emily: at the same time you formed a partnership it seems , like the chinese government is only restricting the internet even more. obviously, facebook is still blocked in china and twitter is still blocked in china. but it is even difficult to access gmail in china. carmen, what do you think about this tech summit with president xi jinping?
what kind of concrete progress will we see? will facebook be unblocked or are those things just never going to happen? comment: i'm actually optimistic about what is happening right now. i think that, as you know, i think that google is returning to the chinese market. and i think facebook is still engaged in discussions and i'm quite optimistic. i think that this summit in seattle is a very good opportunity for people from china, for people from the u.s. and a lot of u.s. ceos, as well as u.s. government representatives will be there. it will be a good opportunity for everyone to be able to get together and talk about the possibilities. but i actually think that, if we look at what cloudflare has been able to do, i am
quite optimistic that during this next time, we'll see more efforts like cloud flare which will succeed in enabling u.s. companies to be in china. emily: i appreciate your optimism, but i have spoken to a number of experts on the opposite side who say facebook is not going to be unblocked in china a time soon. -- anytime soon. matthew: when we were approaching china, we came at it from a perspective that china is going to run their network the way they run it and we may agree or disagree, but we have not taken the position as a tech company here in san francisco that we can dictate how china runs their network. instead, we said what percentage of our customers are nonproblematic in china? and the
answer is about 99% of our customers are nonproblematic. that allowed us to say how can we make the internet better for that 99%? there's a lot of discussion that has to happen around that 1%, but for the vast majority of the internet, things work very well. emily: matthew prince, ceo of cloudflare, thank you so much for joining us. carmen chang, thank you as well for joining us. a stock we are watching. alibaba shares tumbled after a magazine article suggested the company may lose another 50% of its value. alibaba shot back saying the article is inaccurate and misleading. nintendo has named their new company president. he will be replacing the late and beloved satoru iwata. he has been with nintendo since
2000 as president of nintendo of america, he was instrumental in the wii success. however, iwata left very big shoes to fill. under his guidance, nintendo had massive hits with pokemon and others. he was president and ceo of nintendo for 13 years. coming up, the cofounder of tom-tom tells us how it will be at the forefront of the driverless car future. plus more than 150,000 people are headed to san francisco for the dreamforce conference. what to expect, next. ? ♪
emily: a story we are watching. twitter says it is adopting --ipes mobile adopting tool adopting relay to make it easier to buy products in a link. amc, burberry, home depot and old navy are working with twitter on this initiative. twitter says expect more e-commerce announcements in the coming weeks. it has been over a decade since tom-tom launched its first mass market gps device. but after quickly dominating the market, google maps came along and made navigation more personal and free. today i'm unveiled new -- tom-tom unveiled new technology that will help in the development of driverless cars. that cofounder joins me here in the studio. thank you so much for joining us. as we were talking about self driving cars, i wonder what is will tom-tom's role in that
revolution be. corinne: we have been investing for years.nology and today we just announced the heidi -- highly automated driving three defense. we are ahead of the competition and we are working with most car manufacturers around the world to bring this technology to make it a reality. emily: are you built into cars? corinne: we are built into cars and work with a lot of manufacturers around the world. with volkswagen, we drove driverless from las vegas to los angeles powered by tomtom maps. emily: will we see tomtom maps in apple cars anytime soon? there are less than a handful of inguest: you will see it maps and traffic, we are really interested in investing in that technology. emily: what is interesting,
there are less than a handful of players in this space and it is , usually valuable technology. have you guys received any interested buyers? corinne: they are of course very valuable assets. we are the last independent one. i think we will carry on that technology, we are parting with -- partnering with a lot of people and we will keep this way. emily: have you considered selling? corinne: i think having these assets and having invested for all those years, i think we are right happy to be in the position where we are. emily: why do you think tomtom would be more successful as an independent company? rather than part of a larger attack company, for example. corinne: our technology is well think there are a lot of companies around the world we can work with. emily: how do you see your self expanding? would you consider taking on minority investors who can help making tomtom even bigger than
it is today? corinne: we do a lot on the consumer electronics site. we just launched a new watch and with music built in, on your wrist. activity tracking, and we launched an action cam. we have a lot of different developments. the map is still the big radical innovation. but we also have a lot of other innovations. emily: how do you see improving on the map as we see them now future of the mapping technology other than where you can find it? where is the technology going? corinne: you need real-time mapping data, and the world is changing all the time. you need scalable technology that allows the map to change as the road changes and it is very complex to do. today we are leading in this field. emily: in five years, where is tomtom? corinne: one of the biggest partners with carmakers to work with the autonomous driving
plan. i think we are part of the revolution. emily: cofounder of tom-tom thank you so much for , joining us today. google has tapped an auto industry executive to lead his driverless car project. he was named ceo of the self driving car project. he was most recently president of true car and led hyundai's u.s. operations. google said the company does not plan to manufacture its own cars. now to dream force. one of the biggest and flashiest events on the tech calendar. we are talking about salesforce's annual conference which will take place at a few blocks from here in san francisco. i will be there. bloomberg west will be there. in the 13th year, the conference has grown from a small group, to
filling a ballroom to over 150,000 attendees. so with all the work that goes into planning an event like dreamforce, what can we expect? the salesforceis executive vice president. obviously this is a huge week for you. what are you most looking forward to? guest: we are so excited because dreamforce is the largest sales -- software conference on the planet. we have 160,000 people registered to attend. this is going to be the biggest and best dream force yet. and we are bringing in a cruise ship this year. the dreamboat. dream force is all about innovation, it's about one and giving back. that is why people come. it is our largest investment we make and customer success and it is the four best days ever. emily: why is sasha della there , why is the new ceo of cisco
there who i , will be speaking to? lynn: everyone wants to come to dreamforce because it is the at the center of innovation and inspiration. we have incredible speakers, we have the ceo of youtube and we have incredible women pioneers and trail blazers. we have world championship sports teams. the san francisco giants, they are going to join us as well. after three days of intense product innovation and business, zen.re going to go we have a mindfulness day. it's going to be an amazing, amazing four days. emily: you have people from hollywood there like goldie hawn. i'm going to be speaking with an -- adrian grenier from "entourage." very excited about that. when it comes to salesforce's objectives, every year, they
talk about some big trend. what is it this year? in enterprise software. lynn: people come to dreamforce to hear about what is next. we're talking about cloud and mobile, data science the , internet of things. you have to come to the main keynote. 1:00 p.m. on wednesday, we have mark any off -- marc benioff with incredible special guests. not only in the pitino, but in the showcase we have over , 2000 customers sharing their success stories. emily: everyone knows mobile, cloud and social, but how do they execute and make their companies the future? lynn: they can come to dreamforce and learn. we have over 1500 sessions. if you can't come to san francisco, we will have 10 million people watching live, so you can watch online. this is a place not just for salesforce to talk about what is next, but also customers and partners and incredible speakers. it is the place for innovation
and a place to talk about where is the future? emily: every year, i look forward to marc benioff. the keynote is certainly a force. lynn: we have some incredible surprise guests as well. emily: i'm looking forward to it. we will be there all week. and we are also doing the world's largest book drive this year. we are going to raise a million dollars and i brought some of my favorite looks for you to bring and make the donation. emily: i appreciate it. i should probably bring some of my own books. i appreciate this, thank you so much. coming up, michelle phan's start at just raise $100 million in funding. what does the subscription makeup plan next? and plans for iphones from china. all of that, coming up. ♪
emily: time now for our daily byte, one number that tells a lot. today's number is 10 million. that is the number of iphone sales apple needs to make in its first weekend if it wants to break last year's record. forhas not released figures the preorders, but they claim to be on pace to break 2014's record sales. analysts predict sales of as many as 13 million units. this is the first year that china is one of the country to -- countries to sell the smartphone at its introduction. ipsy, the subscription makeup service launched by youtube star who became famous for her
makeup tutorials and created the company in 2011. they mail out beauty products once a month for a $10 fee once a month. what are they doing for additional funding? joining me is the cold -- cofounder. thank you for being here. as i understand it, the most you had raised previously was $3 million. 3 million, to $100 million, that is a huge jump. how you attract that kind of investment? guest: i think what our investors saw and what we were doing, is that we were disrupting a very established, large, attractive industry which is the beauty industry. as part of doing that, it's such a big industry that we need capital to grow and bugle to be able to grow versus our competitors in the industry. emily: so, what is the deal here, birch box has a
subscription service, jessica alba has her own subscription service. what's so great about ipsy? guest: what is different is it is so much more than just caught up. there are five ute products every month. and then we pair that with content that shows you how to use the products. this is working with michelle and our content creators who work out of our studios to create beautiful and educational content on how to use the products that you get. emily: you get $50 worth of stuff for $10, but how much a -- makeup do people really need? how long our customers sticking around once they sign up? marcelo: they are staying around for a long time because they enjoy the experience. part of that is just a gift for yourself every month. they are really delighted by all the experience, and the content and find generated by beauty to readers, who are creating videos on youtube and instagram. you are just playing along and
having a good time every month. emily: i'm all about gifts for myself, but how do you afford giving away $40 worth of makeup to every customer a month, basically? jennifer: we worked with an amazing set of partners in the beauty universe. in order to make sure their brand is relevant, they need to be in the hands of the content creators. we work with different brand partners who are willing to give us their products in order for us to tell -- and not to our engaged audience and connect them with the network of creators we have on youtube and instagram, publishing the best beauty content online. emily: tell me about the community. it is incredibly strong and active. of course, michelle is part of it. marcelo: the beauty industry is totally changing to one with people generating awareness are the content creators. they are on youtube, instagram and snapchat. in the past, it was magazines and the makeup counter. that community is important.
we give them tools, access to our studio and access to events, so they can participate and grow their own careers as well. they become heart of the community. emily: $100 million, excited about this. how do you use the money? colin continued investment in the creative space. we believe in content creators and it's time to invest in that space and it gives us $100 million more to invest in creators. emily: i think i own myself against. gift. myself a thank you so much for joining us. that does it for this edition of "bloomberg west." do not miss my interview with benchmark capital bill gurley tomorrow. ♪
♪ announcer: from our studios in new york city, this is "charlie rose." charlie: we begin tonight with the refugee crisis in europe, with the number rising sharply in the last month, people making a dangerous journey from syria and iraq, starting a conversation, and president obama said the u.s. would take in 10,000 refugees here, and germany announced it is expecting 800,000 asylum seekers and refugees by the end of the year. the government has said it can in up